Intangible asset management framework for long‐term financial performance

Abstract

PurposeThis paper aims to propose a framework for intangible asset management in business and industrial organizations. The proposed framework is applied to a case example company in the Stock Exchange of Thailand.Design/methodology/approachThe proposed framework refines the strategy map concept in the balanced scorecard approach for use in intangible asset management. There are two phases, the top‐down phase involving a four‐step intangible asset identification process and the bottom‐up phase establishing the cause‐effect relationships between the intangible assets of the various functional departments in the organization and its financial performance.FindingsIntangible assets belong to different functional departments. They must be carefully monitored and properly nurtured by the organization. Intangible assets depend not only on the type of functional departments but also the type of industries. To be competitive in today's knowledge economy, it is vital for business and industry to identify and locate the intangible assets in their functional departments and then establish how they contribute to the financial performance of the organization.Originality/valueUnderstanding of the framework will lead to tangible benefits and competitive advantage once the intangible assets are brought under control, properly managed, and suitably funded.

The impact of intangibles on firm growth

“…The majority of extant research in the field consists of conceptual articles (Chareonsuk and Chansa-ngavej 2008;Kristandl and Bontis 2007;Teece 1998) or case study analyses (Hall 1993;Huarng and Yu 2011;Stanworth et al 2004), while we need more quantitative studies to measure and validate the positive role of intangibles (Pike, Roos, and Marr 2005). Our survey addresses this research gap.…”

Intellectual capital and financial performance of Serbian companies in the real sector

“…The very meaning of "intangible" indicates something that is not possible to touch, something that is barely describable or measurable. International accounting standard (IAS) 38 5 defines intangible assets as non-monetary assets with no identifiable physical form. In addition to "intangible assets," further synonyms for IC include "non-material resources," "intangible capital," "intangible values," and "intellectual property".…”

Intellectual capital and financial performance of Sharia-compliant banks in Saudi Arabia

“…It fully complies with banking principles referred to in Sharia law, also known as the Sharia-compliant banking system. The Sharia banking system arose at the dawn of Islam (Ali, 2015;Chachi, 2005). The basis of the Sharia-compliant banks lies on three important pillars, i.e.…”

“…The basis of the Sharia-compliant banks lies on three important pillars, i.e. : a) prohibition of Ribaa' (interest); b) prevention of speculative activities (gharar); c) proscription of financing the illegal (haram) business activities (Chachi, 2005;Nawaz & Haniffa, 2017).…”